Senator Cramer’s Weekly Update April 8-14

Senate Passes Bipartisan Legislation to Overturn FHWA’s Illegal Emissions Rule

In November 2023, the U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA) finalized a rule, forcing state departments of transportation and metropolitan planning organizations to measure greenhouse gas (GHG) emissions on the highway system and set declining targets, despite lacking any authority from Congress to do so.

As a result of this federal overreach, I was joined by U.S. Senators Shelley Moore Capito (R-WV) and Joe Manchin (D-WV) and U.S. Representatives Rick Crawford (R-AR-01) and Sam Graves (R-MO-06) in introducing a bipartisan Congressional Review Act (CRA) Joint Resolution of Disapproval to nullify the FHWA rule and illustrate Congress’ objection. On Wednesday, the legislation passed the Senate with a vote of 53 to 47.

I delivered remarks on the Senate floor, where I highlighted the importance of overturning the greenhouse gas performance measure regulation.

Few things are more frustrating in government than unelected bureaucrats asserting authority they don’t have and foisting federal mediocrity on the excellence of states.

The Federal Highway Administration provided a very novel rationale. It argued that since Congress was aware of its plans to promulgate this rule, and did not explicitly bar it, "Congress intended to leave such determinations to agency expertise to be handled via regulatory authority." That's not just arrogance, that is arrogance on steroids. The Biden administration should have never introduced this rule. But now we, the policymaking branch of government, must end it.

Congress has not provided the DOT with any statutory authority to implement its proposal. It was thoroughly debated and intentionally left out of the Bipartisan Infrastructure Law. FHWA’s new rule resembles a 2017 Obama administration rule which the Trump administration repealed in 2018 after reconsidering the legal authority under which it was promulgated. Recently, two federal courts issued decisions against the rule, reiterating Congress never gave the Executive Branch this authority.

The absence of a prohibition is not a license for the bureaucracy to do whatever it pleases. These court rulings underscore agencies must abide by the law, not invent the authority they desire. Several states have resoundingly rejected this illegal rule. Several state departments of transportation objected to it in writing, and several states joined this litigation.

On Thursday, I joined Larry Kudlow on Fox Business to discuss the Senate passage of my CRA, as well as the status of green energy subsidies under the Biden administration.

Secretary Austin and General Brown Testify on Military Budget, Energy Assets, and China’s Defense Capabilities

During a Senate Armed Services Committee (SASC) hearing on Tuesday, Secretary of Defense Lloyd Austin and Chairman of the Joint Chiefs of Staff General Charles Q. Brown, Jr. testified on the Department of Defense budget request for Fiscal Year 2025 and the Future Years Defense Program.

I specifically asked Secretary Austin and General Brown about the future of intelligence, surveillance, and reconnaissance (ISR), flat defense budgets, energy assets in Russia, and the need to innovate at the speed of China.

I first questioned General Brown on whether it is his best military advice to continue cutting the defense budget to the point where the United States is below three percent of our GDP. Brown equivocated but ultimately said he would continue to work with Secretary Austin and the committee to advocate for the resources required by the Joint Force.

I then asked Secretary Austin about whether energy has become a weapon in the war between Russia and Ukraine, as well as against Iran. I explained the United States could be doing more to provide cleaner energy sources, rather than using sanction waivers to let Iran continue to sell to another adversary such as China.

Further, I expressed my concerns about the Air Force eliminating legacy and current ISR assets, in addition to future ISR programs, “With the hope somehow low Earth orbiting satellites are going to solve the day.”

General Brown said ISR is one of the more contentious fights across the Joint Force. Due to his capacity as the former Air Force Chief of Staff and now more broadly as Chairman of the Joint Chiefs, Senator Cramer asked him for an explanation.

I concluded my questioning by emphasizing the importance of finding a way to match China’s speed for all our modernization priorities.

Bureau of Land Management Finalizes Overbearing, Costly Rule on American Oil and Gas

The Bureau of Land Management (BLM) finalized its onshore oil leasing rule, which will hike up the bonding requirements and fees for oil and gas companies, raise royalty rates, and tighten permitting regulations on federal lands.

Inflation is soaring, and energy is at the heart of it. This rule is the direct result of the Biden administration’s partisan so-called Inflation Reduction Act, and ironically, it is doing anything but reducing the inflationary pain Americans are feeling.

Democrats and their climate zealots rammed through policies they knew would add costly regulatory burdens on American energy producers, and now North Dakota’s operators and families are being saddled with the bill.

Key elements of the rule include:

• Increases minimum bonding requirements to $150,000 and the minimum statewide bond to $500,000. The bond amounts will be adjusted for inflation every 10 years.
• Increases royalty rates for leases to 16.67 percent from the current 12.5 percent.
• Increases minimum bids for federal oil and gas leases to $10 per acre, up from $2 per acre. After August 16, 2032, that amount will be regularly adjusted for inflation.
• Increases rental rates to $3 per acre per year during the first two-year period beginning upon lease issuance, then $5 per acre per year for the subsequent six years, and then $15 per acre per year thereafter. After August 16, 2032, those rental rates will become minimums and are subject to further increases.
• Implements a new $5 per acre fee for expressions of interest.
• Establishes BLM preferences to offer lands for lease based on wildlife, cultural sites, and existing infrastructure.

During President Biden’s second week in office, he halted federal oil and gas leases. In March 2023, U.S. District Judge Daniel Traynor ordered the BLM to resume quarterly oil and gas lease sales in North Dakota.

Senate Passes Legislation to Rescind Unworkable Joint Employer Rule, Protect North Dakota Businesses

In late October 2023, the National Labor Relations Board (NLRB) released a final rule to expand the circumstances under which a company may be considered a joint employer. The new rule undermines the franchise business model by forcing liability on companies for another business’ employees, even if they do not directly manage them.

Additionally, it creates uncertainty among small and local businesses as to their legal liabilities, leading to higher operational costs and less opportunity to create jobs. North Dakota is home to 2,338 franchise locations, employing nearly 25,000 people.

For over 25 years, a company could only be considered a joint employer if they have “direct and immediate” management over another business’ employees. The Obama administration changed this in 2015 and forced companies to be liable for another business’ employees if they held “indirect” and “reserved” control over their workers. The 2015 rule cost franchises an estimated $33 billion each year, 376,000 job losses, and expensive litigations.

In 2020, the Trump administration returned to the longstanding “direct and immediate” standard, providing liability relief to businesses.

I cosponsored and voted in support of H.J. Res.98, a Congressional Review Act (CRA) resolution of disapproval to overturn the NLRB’s new joint employer rule. The resolution passed the Senate on Wednesday by a vote of 50 to 48.

This rule, crafted by out-of-touch D.C. bureaucrats, would negatively impact millions of workers and thousands of businesses if left in place. It represents another attempt by this administration to pursue unnecessary and costly regulation, at the expense of our nation’s workers and economy. The Senate's vote repeals this egregious rule and protects the franchise business model in America.

North Dakota businesses like Anytime Fitness and Great Clips are directly impacted by this rule and supported my efforts to overturn it.

Luke Andrus, North Dakota Anytime Fitness franchisee:

"I am thankful that Senator Cramer is working to stand up for my franchise business and the 2,000 franchise businesses across the state. He continues to support us against Washington, DC overregulation, and we appreciate his efforts to repeal this NLRB joint employer rule."

Emily Wilcox, North Dakota Great Clips franchisee:

"The franchise model is an integral part in North Dakota’s thriving economy, and we are grateful to Senator Cramer for his steadfast support. The final joint employer rule is as unworkable as it is impractical. This rule would remove the independence of small business owners like me and turn us into mid-level managers. Local franchise owners pour our heart and soul into our businesses, employees, and communities -- and now Washington is meddling in our affairs to satisfy their special interest allies. Thank you, Senator Cramer and all the other elected officials, willing to stand up for the franchise model before it’s too late."

Senators Introduce Legislation to Increase the Rates of Compensation for Veterans

Each year, the Social Security Administration (SSA) determines the cost-of-living adjustment (COLA) by analyzing the Consumer Price Index in order to reflect the fluctuations in goods and services across the country. The SSA last announced a 3.2% adjustment in October of 2023 and will reveal the next COLA this coming October.

I cosponsored the Veterans’ Compensation Cost-of-Living Adjustment Act of 2024, which directs the U.S. Department of Veterans Affairs to provide a COLA. This legislation was introduced by Senate Veterans’ Affairs Committee Chairman Jon Tester (D-MT) and Ranking Member Jerry Moran (R-KS), and Congressman Morgan Luttrell (R-TX-08) introduced a similar measure in the U.S. House of Representatives.

Effective December 1, the legislation would specifically increase the rates of compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation for the survivors of certain disabled veterans, and for other purposes.

Our veterans are not immune to cost-of-living surges across the country, and their compensation should reflect this reality. Congress has a responsibility to ensure our servicemembers have access to the resources they need to thrive, and this legislation provides enhanced assistance when they return home.

Senators Introduce Legislation to Reverse CFPB Credit Card Late Penalty Final Rule

At the beginning of March, the Consumer Financial Protection Bureau (CFPB) announced its final rule to restrict credit card penalties, capping late fees at $8, down from $32. The rule, which is expected to go into effect on May 14, fails to consider how the proposal would harm American consumers, resulting in lower credit scores and reduced credit availability.

With the introduction of a Congressional Review Act (CRA) resolution of disapproval, I joined Ranking Member of the Senate Banking Committee U.S. Senator Tim Scott (R-SC) to express opposition to the CFPB’s rule. The CRA resolution is supported by the Consumer Bankers Association, America’s Credit Unions, Independent Community Bankers of America, Bank Policy Institute, American Bankers Association, Americans for Tax Reform, Competitive Enterprise Institute, and U.S. Chamber of Commerce.

In April 2023, I joined several Republican members on the Senate Banking Committee in a letter to CFPB Director Rohit Chopra, requesting the Bureau rescind the rule and “stop unfairly disparaging commonsense fees that allow businesses to offer credit, bank accounts, and financial products to individuals with a limited credit history, before these efforts cause unnecessary harm to American consumers.”

Last month, the American Bankers Association joined the U.S. Chamber of Commerce, Fort Worth Chamber of Commerce, Longview Chamber of Commerce, Consumer Bankers Association, and Texas Association of Business in filing a lawsuit challenging the CFPB’s rule. In a statement, the U.S. Chamber of Commerce stated the CFPB “exceeded its authority” and said the rule “punishes Americans who pay their credit card bills on time by forcing them to pay for those who don’t.” The Bank Policy Institute said the rule is a “prime example of how the CFPB has been politicized, and how its regulatory actions promote rhetoric over analysis and data.”

Bipartisan Legislation Seeks to Close Child Exploitation Loophole in Existing Federal Law

While federal law routinely penalizes recidivist child exploitation offenders for their crimes, a loophole in the existing Uniform Code of Military Justice (UCMJ) fails to sufficiently discipline repeated child exploitation offenders with prior military convictions. To close this significant loophole, I joined U.S. Senator Marco Rubio (R-FL) in cosponsoring the Parity for Child Exploitation Offenders Act to ensure enhanced sentencing for defendants with prior federal, state, or military convictions related to sex or child sexual exploitation.

A companion measure was introduced in the House by U.S. Representatives Claudia Tenney (R-NY-24) and Deborah Ross (D-NC-02).

Protecting our children, the most vulnerable and innocent members of society, is our most fundamental duty. Regrettably, existing laws contain unacceptable loopholes which fail to adequately penalize offenders of child exploitation crimes.

Effectively addressing these gaps will ensure that repeat offenders of child exploitation, sentenced under the Uniform Code of Military Justice, are held accountable and judged by the same standards as those without prior military convictions. I look forward to working further with my colleagues to pass this legislation and ensure the safety of all children.

The Parity for Child Exploitation Offenders Act proposes amendments to several statutes under Title 18 of the U.S. Code to ensure repeated military offenders receive enhanced sentencing when compared to their civilian counter parts. Upon implementation, this bill would also address the disparity in sentencing for child pornography-related offenses under the Uniform Code of Military Justice, which were previously excluded from enhanced sentencing provisions.

U.S. Department of Health and Human Services Awards More Than $6 Million to North Dakota

The U.S. Department of Health and Human Services (HHS) announced a total award of $6,015,160 in discretionary funding to the following programs and initiatives in North Dakota:

• $3,000,000 to the University of North Dakota, provided through the Federal Office of Rural Health Policy to fund a cooperative agreement supporting the Rural Health Information Hub (RHIhub)
• $1,564,410 to the Standing Rock Sioux Tribe through the Administration for Children and Families’ American Indian and Alaska Native Head Start and Early Head Start programs
• $1,450,750 to the North Dakota Department of Health and Human Services to strengthen public health infrastructure, workforce, and data systems

National Park Service Awards $110,950 to North Dakota Communities

The National Park Service (NPS) announced an award of $110,950 to North Dakota from the Land and Water Conservation Fund (LWCF). These funds are authorized by Congress through LWCF and allows the state to further allocate these funds to support local public parks projects, state conservation, and expand outdoor recreation access.

The grants will be distributed to the following projects in North Dakota:

• $56,000 to the town of Lisbon to improve two campgrounds within Sandager Park
• $54,950 to the town of Towner to replace the public restroom

Since 1965, the NPS has provided more than 40,000 LWCF grants, primarily funded with federal offshore oil and gas lease revenue, to states and local communities. In 2019, I helped pass the John D. Dingell, Jr. Conservation, Management, and Recreation Act, which was signed into law by former President Donald Trump. The legislation reauthorized and reformed LWCF program so states receive at least 40 percent of its funding. LWCF grants are locally determined and competed at the state level through a process designed and managed by state partners of NPS.

Jay Jacobson & Firearms Regulatory Accountability Coalition

I met with Jay Jacobson, the owner of Franklin Armory, and the Firearms Regulatory Accountability Coalition (FRAC), reinforcing our commitment to protect Second Amendment rights. In the face of government overreach, I appreciate their work to preserve Americans’ Second Amendment liberties.

National Shooting Sports Foundation

The Second Amendment is a foundational American right and key to protecting our freedoms. My meeting with the National Shooting Sports Foundation (NSSF) focused on the importance of defending the Second Amendment and how my Fair Access to Banking Act would ensure gun makers do not suffer from unlawful discrimination.

Window and Door Manufacturers Association & the National Lumber and Building Material Dealers Association

I started my day on Wednesday by speaking with the Window & Door Manufacturers Association and the National Lumber & Building Material Dealers Association about tax reform and the workforce shortages facing their industries. Clear, concise, and limited government is good for business.

Independent Petroleum Association of America

I met with the Independent Petroleum Association of America to discuss the Biden administration's excessive energy regulations and dumb “pauses” on LNG exports. We do it cleaner and better. When our producers are held back, dirty, foreign adversaries like Iran and Venezuela fill the void.

Garrison Diversion

I frequently say, North Dakota doesn’t have a water supply problem, we have a water distribution problem. Garrison Diversion is helping bring supply solutions to our irrigators and local communities. I'm glad we were able to catch up on our work to fix Snake Creek Embankment and irrigation shortfalls.

E-Space

I enjoyed the chance to meet with Greg Wyler, the Founder and CEO of E-Space, to discuss the work he and his team are doing to create and field affordable, innovative satellites and space-based communications at the speed and scale needed for our national security.

Alzheimer’s Association

I sat down with Alzheimer’s advocates from Bismarck and Fargo to talk about the challenges facing families and caregivers. Together, we will fight to one day end Alzheimer’s.

Close Up Students

It was a beautiful day to meet with students from North Border School District, Garrison High School, Rolette Public School, and Dickinson High School on the Senate steps for their Close Up trip. We had great discussions about our country’s exceptional system of self-governance and life in public service.